The most compelling opportunity was to develop a unique product liability structure to meet the needs of diverse company’s holdings. Prior to Lockton’s involvement, one division was not able to secure product liability coverage due to their product class and associated catastrophe exposures. Other divisions purchased and managed programs independently. Additionally, the company had divisions headquartered in Europe and Asia, but no control of the insurance placements and no overlying excess program.

To address risk management issues, Lockton identified a creative underwriter, engaged the product liability defense counsel in a marketing effort, and developed credible loss data to support a unique product liability risk financing structure. Lockton not only placed coverage when none had existed, we developed a program structure that mirrored the company’s corporate risk profile along with the unique objectives of each subsidiary. Lockton ultimately created a single global casualty program providing consistent coverage across the enterprise.

A major manufacturer had significant earthquake (EQ) exposures at their inventory warehouses as well as a very large Ocean Cargo exposure. Lockton blended the two coverages together to cover the raw materials, inventory and finished product through transit and while at fixed locations. This blending allowed the client to benefit from favorable Marine pricing on its inventory at fixed locations, broad EQ coverage and very low EQ deductibles. It also allowed the property insurer to benefit from having the Marine program act as an underlying "deductible" on inventory.

One of the largest U.S. manufacturers of oil steel tubular products used in the completion of new oil and natural gas-wells. It has roughly 1,000 employees located in its two plants. The client’s incident rate was three times worse than the Bureau of Labor Statistics average. Its claim costs were doubling from one year to the next.

Lockton’s safety and claims cost control consultants performed a survey of the company’s safety and post-injury practices. Lockton’s objective was to determine key drivers pushing the company’s deteriorating workers’ compensation experience. Create a business plan to reverse the trend and implement all recommendations. Many injuries were serious, traumatic events. Even so, management perceived that many employees were filing fraudulent claims. The internal claim coordinator failed to file employees’ reports of injury in a timely manner.

Working together, the Lockton Safety Professional and Claims Cost Control consultant gained management’s commitment to hold supervisors accountable for safety activities and prompt claim reporting. We trained the internal claims coordinator on appropriate injury-management techniques. The safety consultant helped the company realize it really could create a safe culture. The claim coordinator used Lockton’s claim management software to help her make a difference in the outcome of the employees’ injuries. After one year, the company went from reporting 32 percent of its claims within three days of the date of injury to reporting 92 percent within three days. The company saw a 62 percent drop in average cost per claim within one year of implementation.

One of our new clients thought they had a good deal from their casualty insurer when they had provided them with a “roll-over” renewal that--for the first time in nine years--didn't require the company to post additional collateral. They asked Lockton to look deeper, and we found major savings. Lockton helped this major consumer goods manufacturer free up $12 million in collateral. In addition, negotiations led to the return of $1.2 million in cash and reduced premiums by 20 percent while keeping the same retentions, policy limits and coverage. Said the company treasurer, “Lockton has done more in the past month than our other broker did in the past two years.”

Lockton worked hand-in-hand with a long time client in energy manufacturing to help the company win a large contract.  The energy equipment manufacturer needed to improve its safety and loss control, and asked Lockton’s risk control team to evaluate their existing programs.  Lockton made a series of recommendations, and launched a series of actions to advance the client's safety goals.  Lockton even made a safety presentation on behalf of the client, which helped them win a bid for them, according to the company President/CEO.  After logging more than 100 hours consulting and improving safety programs, Lockton guided the client to a reduction in safety incidents and a contract worth $7.6 million.

Lockton has served a nationally recognized food company for several years now, and has helped the client through many changes.  In 2003, after the company was sold to a private equity firm, Lockton attacked a massive backlog of workers’ compensation claims, closing more than 200 open claims.  In the process, about $4.5 million was freed up for the client.  The client was sold to another private equity firm a few years later, which saw the company scale back its operations.  Lockton helped them through a staff downsizing, showing the company how to properly handle exit interviews.  This training kept fraudulent workers’ compensation claims to a minimum.  In addition, Lockton’s assistance during the past several years has seen a $530,000 reduction in a letter of credit for the client.  The client’s total cost of risk for 2007-2008 dropped more than $2 million from 2005-2006.

In 2008, Lockton offered an international multi-billion dollar manufacturing company a free evaluation of its property insurance program. The results revealed a number of coverage gaps, including inadequate earthquake coverage of the company’s production center in Japan. After earning the company’s BOR, Lockton produced and distributed a thorough, tailored Compensation and Benefits and Instructions report to a number of insurers as part of a quota share program. Lockton was able to produce coverage that not only increased the company’s Japanese earthquake coverage by 500 percent, but also lowered its premium by more than 30 percent. The company also gained access to Lockton’s global network for seamless delivery of services through local assistance.

 A Fortune 200 consumer goods company contacted the two largest publicly-held brokers for a required collateral estimate as part of a plan renewal. When the brokers presented estimates of $70 and $65 million increases, the company sought an opinion from Lockton. Unlike the other two brokers, Lockton used the company’s past loss data as the primary diagnostic, and made an initial estimate of a $10 million increase. After being given the broker of record and, thus, being privy to even more of the company’s information and documents, Lockton secured a $5 million collateral increase for the company.

After reviewing a manufacturing firm’s financials, Lockton found opportunities to improve its captive. Lockton identified several flaws in the program. Lockton proposed a complete rewrite of the program’s structure in addition to an evaluation of potentially unused assets that could be put to work. The restructuring plan returned with better results than initially expected and Lockton uncovered substantial additional unused assets as well. This saved the company $1.5 million in fixed costs and alleviated $55 million of collateral letters of credit.

Lockton helped a major consumer products manufacturer and marketer properly re-set its claims reserves when the company thought it was over-reserving its excess casualty program. The existing broker served simultaneously as a consulting actuary, and the company faced a balance sheet with a large liability. Lockton’s Risk Management Analytics Team’s reserve reviews confirmed millions in surplus reserves. Following an audit and negotiations, the client released $8 million in reserve surplus to the bottom line.

After experiencing a $20 million plant fire, a recreational vehicle and commercial bus manufacturer needed to make sure that its new facilities were better protected. Lockton’s experts concluded that the new building had to meet higher automatic sprinkler design requirements based on the buildings use and contents. After complex negotiations with the insurance company and a third-party engineering firm, Lockton persuaded the insurer to fund the $250,000 improvement in the client’s fire protection plan.

An international manufacturer responsible for medical device components and more needed to revise its insurance program. Lockton reviewed the general liability, property and international insurance programs, identifying significant gaps in coverage.  The client implemented Lockton’s recommendation for a Master Controlled Program and also adjusted its  property insurance program, substantially expanding coverage. Equipped with additional protection, the client still saved money, renewing at 5% less than their expiring premium.

To help a leading bedding manufacturer confront its high total cost of risk, Lockton conducted a thorough review of its property, D&O, and casualty programs. Lockton listened carefully, made alterations to all three lines, leading the client to change the client’s primary carriers. The work paid off through large decreases in all three categories of premiums. Property premiums saw a 40% decrease, while D&O and casualty decreased by 35% and 30%, respectively.